Lattice Semiconductor’s Q3 Earnings Call: Our Top 5 Analyst Questions

Core Insights - Lattice Semiconductor's Q3 results met Wall Street expectations for revenue and non-GAAP profit, but the market reacted negatively due to concerns over inventory normalization in industrial and automotive markets [1][5] - The company experienced accelerating demand in communications and computing, particularly from data center and AI infrastructure customers, which CEO Ford Tamer highlighted as a foundation for rapid growth [1][5] Financial Performance - Revenue for Q3 was $133.3 million, slightly above analyst estimates of $133 million, reflecting a 4.9% year-on-year growth [5] - Adjusted EPS was $0.28, matching analyst expectations, while adjusted EBITDA was $47.45 million, exceeding estimates with a 35.6% margin [5] - Q4 revenue guidance is set at $143 million at the midpoint, aligning with analyst expectations, and adjusted EPS guidance is $0.32 [5] Market Dynamics - The company’s market capitalization stands at $8.68 billion, indicating a solid valuation despite the recent market reaction [5] - Management noted that confidence in the 2026 outlook is bolstered by stronger bookings and increased AI capital expenditures from hyperscalers [5][4] Analyst Insights - Analysts raised questions regarding the impact of inventory normalization on future growth, with management indicating that accelerating growth in communications and compute would drive results [5][4] - Concerns about undershipment in industrial and automotive sectors were addressed, with management stating that these issues would be resolved by year-end [5][4] - The company emphasized its stable pricing strategy in the post-quantum cryptography market, despite supplier pressures [5][4]